Top 20 Best Mutual Funds SIP Investment in India for 2016

Best Mutual Funds

Mutual funds are one of the best investment options for wealth creation in India. But, the biggest pain is to find out best performing mutual funds that will help you in fulfilling your financial goals. There are thousand numbers of mutual funds schemes available in the market, which makes Investor confused about which mutual fund they should select for investment. So, if you are a confused investor and looking for the good mutual fund for the investments you are at right place. In this post, I will be sharing information about Top 20 Best Mutual Funds for 2016.

Methodology to Identify Best Mutual Funds –

I have followed methodology given below to identify best mutual funds.

  • Historical Return – I have short- listed these mutual funds based on historical performance. Last 5-year return is considered in order to decide best performing fund. This return is compared with peer funds in the same category.
  • Age of Fund House and Credibility – Another important selection factor is the age of fund house and credibility. I have considered mutual funds from oldest fund house with good credibility.
  • Risk Factor – Higher the risk, higher the return considering this philosophy in mind I have selected mutual fund High and Moderate Risk factor.
  • Fund Manager – I have considered Fund Manager Expertise and experience for the selection of these mutual funds.
  • I have checked investment portfolio of these funds.
  • Last but not least I have also checked rating of this fund by CRISIL and Value Research.
  • I have tried to identify mutual funds from all major categories like Large Cap, Small Cap Mid Cap, Balance, ELSS etc.
  • All information given here are taken from Value Research and Money Control.

Read – How to Invest in Direct Mutual Funds Plans?

20 Top Performing Mutual Fund SIPs in India for 2016

Best Mutual Funds

Top 4 Best Performing SIP Large Cap Funds

Equity mutual funds that invest more than 75% in CRISIL defined Large Cap stocks for six months or above is known as large cap funds. Average return given by this category in 1 year is 17.1%. Top 4 best performing fund under this category are SBI Blue Chip Fund, UTI Equity Fund, UTI Top 100 Fund and ICICI Prudential Focused Bluechip Equity Fund.

Top 4 Best Performing Large & Mid Cap Funds

Equity Mutual funds that invest their money in the large cap as well as mid-cap stock is known as large & mid cap fund. Average return given by this category in last 1 year is 15%.Top 4 Best performing fund in this category are Franklin India Flexi Cap, BNP Paribas Equity, Franklin India Prima Plus and ICICI Pru Value Discovery fund.

 Top 3 Best Mid and Small Cap Funds

Funds that invest their money in a mid cap and small cap stocks is known ad mid cap small cap fund. Average return given by this category in last 1 year is 29%. Top 3 Best performing mid & small cap funds are SBI Magnum Mid Cap, Franklin India Smaller Companies Fund and BNP Paribas Mid Cap fund.

Top 3 Best Balance Funds

Mutual Funds that invest 65-80% amount in equity and rest in debt are known as balance fund. These types of funds are suitable for new investors. The Average return provided by this fund category in last one year is 14%. Top 3 Best balance funds for investment are HDFC Balance Fund, SBI Magnum Balance Fund and Tata Balance Plan A.

Top 3 Best ELSS Funds

The main objective of this fund category is to provide income tax benefit to the investor under section 80c. The Average return provided by this fund category in last one year is 21%. Top ELSS funds are Axis Long-term Equity fund, Franklin India Tax Shield Fund and IDFC Tax Advantage fund.

Top 3 Debt Income Funds

These types of mutual funds invest their money in debt instruments like government bonds, fixed deposit, corporate deposit etc. These types of funds are for conservative investors. Top 3 debt income funds are ICICI Prudential Long-term fund, Franklin India Income Opportunity fund and Tata Dynamic Bond Fund Plan B.

Also Read – Best Balance Mutual Funds in India

Points to Consider before making Investment in Mutual Funds –

  • Before making any investment, you should be clear about time horizon expected return and investment objective. Build your mutual fund portfolio based on your financial goals.
  • I have given some of the top performing best mutual funds here. It is not necessary to invest in each category mutual funds to build your portfolio. Select only four to five mutual funds as per your investment goal.
  • Always select SIP route for investment rather than doing lump sum investment. Invest in mutual funds for the long term at least 5 years or above. If you are a conservative investor you can start building your portfolio by investing in debt or balance funds.
  • Please do not invest in any mutual funds based on tips. Carry out proper research before making an investment. Take advice from expert or Certified Financial planner.
  • Review and balance your mutual fund portfolio at regular interval. Consider STP (Systematic Transfer Plan) for switching from one mutual fund to other.
  • If your mutual fund portfolio is generating negative returns, do not panic. Don’t redeem or Stop SIPs. Avoid taking any decision based on short-term market movements. Continue your SIPs for the longer period.
  • Invest in Growth based mutual funds over dividend based mutual funds. Stay away from New Fund offers (NFOs).
  • Please Remember “Mutual Funds Investments are subject to market risks. Please read the offer document carefully before investing”.

You might have already invested in mutual funds. You may or may not find your funds in above Best performing mutual funds that does not mean that your selection is wrong. Remember that there are thousand number of mutual funds scheme and selection terminology selected by every individual is different.

Stay invested in your mutual funds and monitor performance of the funds closely.

Do share your queries and comments.

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Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 700+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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  1. Rahul says:

    Info: I am 32yrs old living in Mumbai. Married with no kids yet.
    I want to invest in below funds for long term – 20yrs.
    Based on some research over morningstar, valueresearch and youtube videos I have compiled this list of portfolio for me. I have also listed my expeceted YoY returns over 20yrs.
    1) ICICI Prudential value discovery (Mid and Small Cap) – 15%
    2) Franklin India Smaller Companies (Mid and Small Cap) – 15%
    3) UTI Equity Fund (Large Cap) – 11%
    4) HDFC Balanced Fund (Balanced) – 12%
    5) Tata Balanced Fund (Balanced) – 12%

    I am expecting approx 12-13% from my portfolio over 20yrs. Kindly let me know if my expection is justifiable.
    I will be going for DIRECT plan with DIVIDEND PAYOUT option for all the above funds. If you don`t agree with this option suggestion is welcome.

    I would like your second opinion if this portfolio is fine.

    I also have 2 questions on fees:
    1)I have HDFC Securities account. It provides option to buy MF of any AMC online. I see that they did not charge me any fees. I was also able to buy DIRECT plan from HDFC Sec. (I thought direct plans can be bought only from AMCs). They are not letting me start SIP in MFs though. Is there something I am missing here? How is HDFC Sec making money? Will they charge me later?
    2) I am not able to find expense ratio of DIRECT plan for MFs. All sites morningstar, valueresearch, etc show different percentage amount! I also went to AMC site directly and could not find info in some cases. If possible and if not much work can you please share with me current expense ratios of plans i selected? or can you share any document if you may maintain on expense ratios?

    • Dear Rahul,

      List of Mutual Funds in which you are planning to invest is absolutely fine.My suggestion is given below.

      (1) You can merge Tata Balance and HDFC Balance and select single fund.
      (2) Direct plan is very good option for investment you can go with that.
      (3) I advise to select Growth option instead of dividend payout.

      Answer of your query is given below:-
      (1) SIP is available as per detail shown in HDFC online website. Kindly explore the details if required contact them over phone.
      (2) HDFC sec is making money by Entry/Exit load and from investment they do.
      (3) Expense ratio of direct plan are also available on Value Research you can google to find details.One example is -

      Hope you find above information useful drop in your comments incase i missed anything.

  2. Radha says:

    I want to learn trading from basics ,i am unable to learn online, Would want to do trading from home due to health reasons, Kindly suggest from where i can learn before i start trading, i stay in Bangalore. Regrds n Tks in advance.

  3. Anu says:

    Hi Raviraj,

    I’m investing 2000/monthly in Birla sun life frontline equity fund for last 2 years. Please advice if any changes needed.


  4. Diwakar Gupta says:

    I want to invest 5000/ Monthly in a good Mutual fund or in Share Market, which is the best opting in considering long term investment and good return.

  5. vijay says:

    Hello Raviraj,

    I am investing in following funds from last 1 yr. I plan to invest them for a long term 10+ years. Please review and suggest any changes.

    Quantum longterm equity fund
    Axis long term equity
    Can robecco eq tax saver
    HDFC mid cap opp
    HDFC balanced fund
    HDFC top 200


    • Dear Vijay,

      Following mutual funds selected by you is very good.

      Axis long-term equity – ELSS – Good – Continue
      HDFC balanced fund – Balance – Good – Continue
      Can robecco eq tax saver – Relatively new giving good returns

      For Following Mutual funds you may think and change your investment decision.

      Quantum long-term equity fund – Average – Switch to other
      HDFC top 200 – Weak Performance – Switch to other
      HDFC mid cap opp – Average performer in Catagory


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